Minicredit - Loan Agreement validity

[ihateyes]

Having reread section 13 paragraph 7, I am now in two minds as to whether their interest charge up to the point of cancellation *could* be considered valid. For the sake of £13.50, I am not going to bother risking it and have sent the following:

 

"Following my cancellation notice of yesterday (13th July 2011) I hereby confirm I accept to pay the initial amount (£150) and the interest up to the cancellation date (£13.50). Making a total of £163.50. You have continually informed me that you will only take this amount by Debit Card, however, the original card has now been cancelled so that is not possible. Under the terms of the Act I am required to make payment as soon as possible and at least within 30 days, so I would suggest again it is within your interests to supply the required bank details as soon as possible."

 

This is only my read of the act, and there is conflicting advice both here and on other forums, so I am happier to be safe than sorry. Bit of a climbdown though, I now I know I cannot fall foul of anything on the statue.

 

 

I think thats a wise decision.... btw i have a dyslexic keyboard!!

[Tee4Tim]

Well to be honest, it looks like they WANT to go to court. I have just finished a 9 minute phonecall to them, that I advised I was recording, unfortunately though, when I hung up, I pressed the back button on my phone instead of save, and I don't now have a copy of it .... arghh! They continued to simply state over and over again that they would not give over their bank details and that only way they would accept payment was by Debit Card. I tried to explain that I had cancelled the agreement and therefore the terms and conditions relating to the collection of the outstanding amount where irrelevant, but they just would not listen and the lady continued to repeat the same lines over and over again. I made it quite clear that without giving me the bank details the only possibility of Minicredit receiving the amount they believe is owed would be to take me to court and win, and in the event they did secure a victory, the judge would not dictate that I HAD to pay by Debit Card!! Of course, if this did go to court, I believe there is plenty enough in my favour that it could either be struck out or that their behaviour would be sufficient to invalidate the original agreement and thus they'd not receive anything! Despite my request not to be bombarded with spurious letters demanding random amounts, I fully expect to start receiving them shortly and probably the threat of a doorstep collector. I might get my letter in before that whole charade kicks off. What a way to run a "business"!

[Tee4Tim]

One last e-mail to Minicredit for now. Tomorrow according to the now cancelled agreement the money would become owed. I wonder how many calls and e-mails I will get?

 

"With reference to the phonecall I had with your organisation within the last 30 minutes, where I requested your bank details verbally, and you refused to give them. Please be aware that regardless of your decision not to provide me with those details, the fact that the agreement has been cancelled is not in doubt. The fact also remains that in law I have 30 calendar days in which to complete the repayment. Any action by you before this deadline is unwarranted and whilst it may or may not be illegal will not be what is expected behaviour under the terms of your consumer credit licence.

 

Additionally, please be advised that having failed to be able to successfully communicate with you verbally, hencefore I will only communicate with you in writing or via e-mail.

 

Furthermore, should it be your intention to arrange a “doorstep call”, please be advised that under OFT rules, you can only visit me at my home if you make an appointment and I have no wish to make such an appointment with you.

 

There is only an implied license under English Common Law for people to be able to visit me on my property without express permission; the postman and people asking for directions etc (Armstrong v Sheppard & Short Ltd [1959] 2 QB 384. per Lord Evershed M.R.). Therefore take note that I revoke license under Common Law for you, or your representatives to visit me at my property and, if you do so, you will be liable to damages for a tort of trespass and action will be taken, including but not limited to, police attendance."

[ihateyes]

Well i would be double checking and even asking a solicitor to advise what his/her thoughts are....

some agreements if stated payment by debit card, the cancellation would also be expected to be paid by debit card.

Thier behaviour wouldnt get it stuck off, and the fact they refused to give you bank details i doubt would get it stuck out, where does it state they will give bank details?? like your arguement is the cancellation paymnt doesnt state has to be by card...

you might want to check that until payment is made im sure the credit agreement and t&c's are still in force.

[ihateyes]

......

[MattK]

I have a similar-ish issue:

 

applied for a loan with Minicredit last year, and was declined.

 

went to try again today (last resort) and noticed they had out of date bank details (ie an accoutn which I do not use anymore as its in dispute with Natwest).

 

Updated my details, and re-applied.

 

Got 2 messages

 

1, that my accoutn details could not be verified and as such had not been changed.

2, that my loan was accepted and had been paid immeidately!

 

I phoned them straight away and asked them not to pay into that account, but was told it was too late.

Fine, I said, can you recall the funds? No, we can't do that.

Ok, I'll cancel the loan then.

 

They then claimed that the 14 days only applied to my original loan agreement last september - despite the fact that they declined the loan at that time!

 

Surely a loan agreement without a loan is not an actual agreement????

 

I don't know why they're being so difficult - I want to take a loan and pay it back!

[Tee4Tim]

Maybe you're right ihateyes, maybe not. I don't know, I think I am reading things correctly and a lot of people think I don't even need to pay the interest, but that's what I have said I will do to try and get this matter resolved. They have chosen not to do that, and that is their choice. Unless they give me the bank details it is going to court, if that's what they want to do. What's the worst that can happen? A judge will ask me to pay what I can, when I can, how I can.

[Tee4Tim]

MattK, yep, they tried that on with me too, as if it was some kind of rolling agreement where they may or may not sometimes, maybe, perhaps lend you a few quid. Ridiculous and it *might* invalidate the entire thing, I do not know. I am not going to get tied up or worried about it and certainly not going to spend time or money involving professionals to counter the actions of these "businesses". I am totally prepared to let them take me to court and let a judge decided. Despite ihateyes's opinion (and that's not a pop at you mate, just a statement we have different opinions), having read and re-read the articles of Law (and not just Terms and Conditions or Contract which are only effective if they are legal in the first place) I believe are on firm ground. I will keep e-mailing them daily for their bank details until the court settles the matter.

 

For anyones' perusual there' pre-contract (terms and conditions) is thus:

 

Lender’s Details

The Lender is Microcredit Limited, of 30 Borough High Street, London, SE1 1XU, e-mail

[email protected].

The Lender’s main business is lending.

Registrations

The Lender has a consumer credit licence (Number 0621701) and is also registered with

the Office of the Information Commissioner (registration number Z1640897).

Office of Fair Trading

To make a general enquiry concerning consumer credit licensing matters, you can

telephone the Office of Fair Trading on 020 7211 8608, between 9am and 5pm, Monday

to Friday. To search the public register of those who hold consumer credit licenses, you

can either telephone or visit the Office of Fair Trading between 9.30am and 4pm at:

Office of Fair Trading

Consumer Credit Licensing Bureau

Craven House

40 Uxbridge Road

Ealing

London W5 2BS.

Description of Lender’s Service

The Lender is offering to lend money to you on an unsecured basis at a fixed interest

rate. You will have a choice to borrow from £100.00 up to £1000 and the Lender will only

lend you one of these amounts at any one time. The loan is subject to approving your

application and you agreeing to a credit agreement (“Agreement”), which incorporates

certain loan conditions.

Total Price you Will Pay for Our Services

The total price you will pay the first time you borrow from us depends upon the amount

borrowed. The following shows the total price you will pay for the different amounts that

you can borrow what depends of loan amounts:

1) Interest charges: 1% per day of loan amount.

2) Fast Advance Transmission Fee £5.50 - £20.00, repayable in advance (optional).

3) Registration and card validation fee £0.01.

4) Loan request charge £1 if made by text message, online request is free.

The following example shows total price you will pay if the loan amount is £400 and the

loan term is 30 days if requested online:

Total amount of credit £400.00. Duration of the Agreement 30 days. Interest rate 360%

pa (fixed) (Also charged on administrative and transfer fee). Interest amount £120.00.

Total amount payable £520.00. Transfer and administrative fee £19.50. Representative

APR 4144%.

Repayment Arrangements

Each time you borrow from us, you must make one repayment, which is to be made 1 to

42 days after the day on which you receive the loan from us. The amount of your

repayment depends upon the amount you borrow from us.

If you make your required repayment, there will be no other repayments you will need to

make unless you borrow from us again at a later date. We will collect repayment by

debiting your bank account using the debit card details you have registered with us.

Cancellation

You have the right to cancel the Agreement under the Financial Services (Distance

Marketing) Regulations 2004 (“the Distance Regulations”). You will have 14 days from

the date the Agreement is made to cancel the Agreement (“the Cancellation Period”).

The Cancellation Period commences on the day that you receive an electronic copy of

the Agreement at the e-mail address provided by you, which you agree we may deliver

the Agreement to in electronic pdf form. If you wish to cancel the Agreement, please

write to [email protected] and tell us that you wish to cancel. You may also give

us notice of cancellation by:

(i) leaving a written cancellation notice, addressed to us, at our address;

(ii) posting a written cancellation notice, addressed to us, to our address; or

(iii) sending a written cancellation notice to us by facsimile on 020 7138 2919.

If you cancel the Agreement, the Agreement will be terminated at the time which your

cancellation notice is given, however you will have to repay any money lent to you as

soon as possible and in any event not later than 30 calendar days of giving us notice of

cancellation. Where you have borrowed money from us and you cancel this Agreement,

we may charge you £1.00 per day for every £100.00 you have borrowed from us, with

such charge commencing on the day that you receive the relevant £100.00 from us and

ending on the day your cancellation notice is given.

Apart from your right to cancel the Agreement under the Distance Regulations,

described above, there is no other right of cancellation. If you do not exercise your right

to cancel under the Distance Regulations, you will be bound by the terms of the

Agreement.

Access Charges

You are responsible for any telecommunications charges, digital television subscription

or other charges for the time spent by you accessing the Lender’s website

http://www.minicredit.co.uk via the Internet or any wireless, television or other relevant

network.

Period of Validity of Disclosed Information

The information contained in this Pre-contract disclosure is only valid in respect of this

transaction for a period of 6 months from the day it is given.

Applicable Law

The laws of England are taken by the Lender as the basis for the establishment of

relations with you prior to the conclusion of the Agreement.

The Agreement is governed by English law. We and you submit to the exclusive

jurisdiction of the English courts, unless you live in Scotland, Northern Ireland, the

Channel Islands or the Isle of Man, in which case you will be entitled to commence legal

proceedings in your local court.

Language

This document and the Agreement are in the English language and the Lender

undertakes to communicate with you in the English language during the duration of the

Agreement.

Complaints

If you want to make a complaint about the Lender you can email

[email protected] with details of your complaint and your account number. Our

Customer Service staff will acknowledge your complaint by email within 1 business day.

When we acknowledge your complaint, we will provide you with these details, which

summarize how we will handle your complaint.

They will then investigate and send you an initial response, which should take no longer

than five business days.

Where appropriate, the member of staff investigating the complaint will not be any staff

member who was directly involved in the subject matter of the complaint.

If you are not satisfied by our response, you can contact the Customer Services

Manager, who will respond by email within a further five business days. If you are not

satisfied with the response from the Customer Services Manager, you can email

[email protected], enclosing the responses already given to you. Your email will

then be referred to the Chief Executive Officer, who will respond by email within five

business days.

If we cannot settle your complaint after going through the above process with you and

giving our final response, or after the expiration of 8 weeks from receipt of your

complaint (whichever happens first), you may refer your complaint to the Financial

Ombudsman Service.

[Tee4Tim]

Their contact is thus:

 

CREDIT AGREEMENT REGULATED BY THE CONSUMER CREDIT ACT 1974

This Agreement is made on the terms and conditions set out below

The Parties to this agreement are the Creditor:

MICROCREDIT LIMITED ('us'), of 30 Borough High Street, London SE1 1XU, or e-mail

[email protected].

and the Customer ('you') named below.

Full name: ________________

Address: ________________

Email: _________________

KEY FINANCIAL INFORMATION

Credit Limit: £1000.00

Each time you borrow from us, you must make one repayment, which is to be made 1 to 42 days

after the day on which you receive the loan from us. The amount of your repayment depends upon

the amount you borrow from us.

If you make your required repayment, there will be no other repayments you will need to make. We

may vary the amount of your repayment and your repayment date, on written notice, to reflect any

extension of the due date for repayment.

*APR: 4144% pa

*APR is the total cost of the credit to you including all interest, fees and charges, expressed as an

annual percentage of the amount of credit granted.

OTHER FINANCIAL INFORMATION

Total Charge for Credit: The 'Total Charge' for Credit depends upon the amount you borrow from us.

The following shows the total Charge for Credit you will pay for the different amounts that you can

borrow what depends of loan amounts:

1) Interest charges: 1% per day of loan amount.

2) Fast Advance Transmission Fee £5.50 - £20.00, repayable in advance (optional).

3) Loan request charge £1 if made by text message, online request is free.

4) Subsequent repeated online requests maybe chargeable if previous one declined.

Advance payments: £0.01 (being an initial registration fee which is payable once only)

The 'Total Charge' for the Credit shown above is the only charge and there are no other charges for

the Credit under this Agreement.

The 'Total Charge' for the Credit

is made up of the following parts: Interest charges 1% per day depending on how much you borrow; and

Loan request fee of £1.00

(payable each time you borrow an amount from us under this Agreement by text message, first online request is free)

and

Fast Advance Transmission Fee £5.50 - £20.00, repayable

in advance (optional).

Fast Advance Transmission fee is applicable to all loan applications if not notified in written form at

least three days before sending loan application.

Rate of interest on the Credit to be provided

under this Agreement: 365%

The rate of interest on the Credit to be provided under this Agreement is fixed.

Interest charges have been pre-computed at the commencement of this Agreement. Interest charges

are applied and calculated under this Agreement on the date which repayment falls due, being 1 to

42 days after the day on which you receive each amount borrowed under this Agreement.

KEY INFORMATION

If you break this Agreement, we will charge you if we unsuccessfully attempt to obtain repayment on

the due date for repayment. A fee of £25 will be charged on the day that your missed payment was

due. If we unsuccessfully attempt to obtain repayment on the due date, we will attempt to obtain

repayment a second time 2 days later, and if we unsuccessfully attempt to obtain repayment on this

second occasion we will charge you a further amount of £55. If we unsuccessfully attempt to obtain

repayment we may charge up to £3.

Interest on any sum in arrears will be charged at the contractual rate, both before and after judgment,

until payment. Also, you must pay us all other reasonable costs and expenses we incur (including

any legal costs on a full indemnity basis) in tracing you, or enforcing, or attempting to enforce, our

rights under this Agreement.

MISSING PAYMENTS

Missing payments could have severe consequences and make obtaining credit more difficult.

IMPORTANT - YOU SHOULD READ THIS CAREFULLY ABOUT YOUR RIGHTS

The Consumer Credit Act 1974 lays down certain requirements for your protection which should have

been completed when the agreement was made. If they were not, we cannot enforce the agreement

without getting a court order.

The Act also gives you a number of rights. You can settle this Agreement at any time by giving notice

in writing and paying off the amount you owe under this Agreement.

If you would like to know more about your rights under the Act, contact either your local Trading

Standards Department or your nearest Citizens' Advice Bureau.

This is a Credit Agreement regulated by the Consumer Credit Act 1974. Sign it only if you

want to be legally bound by its terms.

This Credit Agreement can only be signed by you electronically. Once you have done so, we

will send a pdf copy of the agreement to the e-mail address you have nominated and agreed

we can use to send documents to you under this Agreement.

IMPORTANT - USE OF YOUR INFORMATION

You have a right to know how we will use your personal information. It is important that you should

read clause 14 overleaf entitled 'Use of Your Information' before you sign.

We may send you information about products of ours and others which may be of interest to you. We

may pass your details to other selected businesses to send you information about their products. You

have a right at any time to stop us from contacting you or giving your details to others for these

purposes. You may write to us at 30 Borough High Street, London SE1 1XU, or e-mail

[email protected] if you wish us to stop.

LOAN CONDITIONS

Application of these Loan Conditions

1. These Loan Conditions will apply to the Credit Agreement entered into by you and us ('the

Agreement').

Warranty

2. You warrant that you are at least 18 years old and that the information provided by you to us prior

to entering into this Agreement is correct and you authorise us to undertake such investigation or

enquiry about you that we may wish to make.

Registration and PIN

3. When you register and apply with us ('Registration'), we will, at our discretion, provide you with a

unique Personal Identification Number ('PIN') which is personal to you and which will enable you to

make a request to us to borrow the sum from £100.00 to £1000 from us ('Request').

4. Registration costs the sum of £0.01. This sum shall be paid by debit card. This sum reflects the

administrative costs we incur in processing your Registration. As such, this Registration cost is nonrefundable,

regardless of whether you make a Request subsequent to Registration. However if you

cancel this Agreement in accordance with the Financial Services (Distance Marketing) Regulations

2004 (see paragraphs 13 to 15 below), we will refund this Registration cost.

Request

5. Upon receiving a Request from you, we will, at our discretion, loan you the sum you have

requested by crediting your bank account, using the bank account details you provided to us during

Registration. To make a Request you need to send us a text message from the mobile phone

number you provided to us during Registration and in accordance with the Request instructions

published on our website, http://www.minicredit.co.uk ('our website') from time to time. Alternative request

can be done online during registration and from secure client account by logging in at our website. If

we decline first request then subsequent request may incur charge up to £2.50. All other service

charges are published on our website and/or secure client account.

One Loan at a Time Only

6. We will only loan you one amount, of up to £1000.00, at any one time. Once you repay a loan in

full (together with payment in full of any other amounts you owe under this Agreement), you can

make another Request and we will, at our discretion, loan you a further amount of up to £1000.00 on

the same terms.

Loan extensions

7. Repayment of each loan and interest at the contractual rate is due 1 to 42 days after the day you

receive the loan in your account. At our discretion you can extend any given due date for repayment

by making an extension request ('Extension Request'). An Extension Request must be:

(i) in accordance with the Extension Request instructions and fees published on our website from

time to time; and

(ii) received by us no later than one day prior to the relevant due date for repayment.

Repayment, Default and Recovery

8. You agree to make all payments to us under this Agreement at the proper time. We will collect

payments by debiting your bank account using the debit card details you have registered with us up

to three times per day. You authorise us to debit your bank account to collect payments due under

this Agreement. If we are unsuccessful in collecting payment, we may try to debit your bank account

again at a later stage until we have successfully collected payment. If you have provided us with

details of a second debit card and we are unsuccessful in collecting payment from the first debit card,

you authorise us to seek payment via the second debit card in the same way as you authorise us to

seek payment via the first debit card. You must give us new valid debit card details when you cancel,

lose or your debit card(s) registered with us become(s) invalid when you have unpaid loan with us.

9. If you fail to make any payment by the due date, we may, after serving any default notice required

by law and after the period for remedying any default has passed, end this Agreement. In such

cases, you must pay any balance of the amount you owe us under this Agreement.

10. Interest on any sum in arrears will be charged at the contractual rate, both before and after

judgment, until payment. Also, you must pay us all other reasonable costs and expenses we incur

(including any legal costs on a full indemnity basis) in tracing you, or enforcing, or attempting to

enforce, our rights under this Agreement.

Cancellation

11. You have the right to cancel this Agreement under the Financial Services (Distance Marketing)

Regulations 2004 ('the Distance Regulations'). You will have 14 days from the date this Agreement

is made to cancel the Agreement 'the Cancellation Period'). The Cancellation Period commences

on the day that you receive an electronic copy of this Agreement at the e-mail address provided by

you, which you agree we may deliver this Agreement to in electronic pdf form. If you wish to cancel

this Agreement, please write to [email protected] and tell us that you wish to cancel. You

may also give us notice of cancellation by:

(i) leaving a written cancellation notice, addressed to us, at our address;

(ii) posting a written cancellation notice, addressed to us, to our address; or

(iii) sending a written cancellation notice to us by facsimile on 020 7138 2919.

12. If you cancel this Agreement, this Agreement will be terminated at the time which your

cancellation notice is given, however you will have to repay any money lent to you as soon as

possible and in any event not later than 30 calendar days of giving us notice of cancellation. Where

you have borrowed money from us and you cancel this Agreement, we may charge you £1.00 per

day for every £100.00 you have borrowed from us, with such charge commencing on the day that

you receive the relevant £100.00 from us and ending on the day your cancellation notice is given.

13. Apart from your right to cancel the Agreement under the Distance Regulations, described above,

there is no other right of cancellation. If you do not exercise your right to cancel under the Distance

Regulations, you will be bound by the terms of the Agreement.

Use of Your Information

14. In considering your application we will search your record at credit reference agencies. They will

add to your record details of our search and your application and this will be seen by other

organisations that make searches. Information held about you by the credit reference agencies may

already be linked to records relating to one or more of your partners. For the purposes of this

application you may be treated as financially linked and your application will be assessed with

reference to any 'associated' records.

We will use a credit scoring or other automated decision making system when assessing your

application.

We will also add to your record with the credit reference agencies details of your agreement with us

any default or failure to keep to its terms and any change of address you fail to tell us about where a

payment is overdue. It is important that you give us accurate information. We will check your details

with fraud prevention agencies and if you give us false or inaccurate information and we suspect

fraud, we will record this.

These records will be shared with other organisations and used by us and them to:

· Help make decisions about credit and credit related services such as insurance for you and

members of your household;

· Race debtors, recover debt, prevent money laundering and fraud, and to manage your accounts.

For these purposes we or they make further searches. Although these searches will be added to your

record, they will not be shared with others.

We may also use information about you to carry out market research.

Fraud prevention agency records will also be shared with other organisations to help make decisions

on motor, household, credit, life and other insurance proposals and insurance claims, for you and

members of your household.

Please e-mail us at [email protected] if you want to have details of those credit reference

and fraud prevention agencies from whom we obtain and to whom we pass information about you.

You have a legal right to these details.

You have a right to receive a copy of the information we hold about you if you apply in writing. A fee

will be payable.

General

15. No relaxation or indulgence granted by us shall affect our rights under this Agreement.

16. You will notify us if you change address.

17. We may assign our rights and obligations under this Agreement.

18. You may not assign your rights and obligations under this Agreement without our prior written

consent.

19. We are a Data Controller for the purposes of the Data Protection Act 1998. We draw your

attention to our Privacy Policy which explains how we use any information you provide to us during

your use of our website.

20. Any notices given to you in relation to this Agreement shall be sent via by e-mail to the e-mail

address you have provided to us during Registration ('your e-mail address'). You agree that we may

send a copy of this Agreement in pdf form, as well as any notices given to you in relation to this

Agreement, to your e-mail address. At our discretion, we may also serve any notice or demand on

you personally, or leave it or send it by prepaid envelope addressed to you at your last known

address. You may serve any written notices on us by first class post to our registered address or by

e-mail to [email protected].

21. Any waiver by either party of a breach of any provision of these Loan Conditions and/or this

Agreement shall not be considered to be a waiver of any subsequent breach of the same, or any

other, provision.

22. A person who is not a party to this Agreement has no right to benefit under or to enforce any term

of this Agreement.

23. This Agreement is governed by English Law.

[MattK]

"The Cancellation Period commences on the day that you receive an electronic copy of

the Agreement at the e-mail address provided by you."

 

 

Never had one as far as I can see.

[Tee4Tim]

Likewise, I don't recall having received one either, and it's certainly not in my inbox now. Maybe they have proof they sent it? None the less, e-mail is not a guaranteed delivery method so that in no way means I would have received it. The only agreement I have seen is the one you can access once logged into the site.

[MattK]

Likewise, I don't recall having received one either, and it's certainly not in my inbox now. Maybe they have proof they sent it? None the less, e-mail is not a guaranteed delivery method so that in no way means I would have received it. The only agreement I have seen is the one you can access once logged into the site.

 

same here - that 'agreeement' isn't even dated or signed?

[MattK]

same here - does'nt have any dates on it though! or signatures?

[Tee4Tim]

And therefore could well be utterly unenforcable then, in which case you and I and everyone in the same situation has absolutely nothing to worry about. I would suggest you logon and download a copy of the agreement from their website, in case dates ever myseriously "appear" on it.

[Tee4Tim]

MattK,

 

If you check the Consumer Credit Agreements - a guide to enforceability thread - http://www.consumeractiongroup.co.uk/forum/showthread.php?162851-Consumer-Credit-Agreements-a-guide-to-enforceability, it states which items are required under the original 1974 Act and then mentions that in the 2004 Order the signature can be replaced with a tick box, however it must still be dated. Well, we have no tick box and no date, so I think we have a agreement which does not appear properly executed. I would welcome confirmation of this from someone who really knows!

[MattK]

me too!

 

I was amazed they didn't even send a 'approved - would you like to proceed/confirm message...just 'approved - funds have been transferred!

[Tee4Tim]

It also states that, if an agreement is not properly executed as defined in section 61(1) of the Consumer Credit Act 1974 then Section 65 says that it can only be enforced by a court. "65.--(1) An improperly-executed regulated agreement is enforceable against the debtor or hirer on an order of the court only."

 

So, I guess that means let the judge decide if an unsigned credit agreement is enforceable?

[26072004]

From my experience you have to accept an agreement either by sending a copy back or acknowledging it online (i've had a few).

 

If they have just sent you an agreement and you have not in some way agreed to it then the loan is unenforceable. you would still need to repay the money they have sent but no other charges or interest would be payable as the agreement is not legally binding without you accepting it.

[ihateyes]

Maybe you're right ihateyes, maybe not. I don't know, I think I am reading things correctly and a lot of people think I don't even need to pay the interest, but that's what I have said I will do to try and get this matter resolved. They have chosen not to do that, and that is their choice. Unless they give me the bank details it is going to court, if that's what they want to do. What's the worst that can happen? A judge will ask me to pay what I can, when I can, how I can.

 

of couse you have to pay interest.... its in the t&c's.... you got the money on 4th july , emailled them 8days later to cancel.......

will you loan me (a complete stranger) for 8days interest free??

[ihateyes]

i would consult a solicitor who offers free consultation to get their thoughts.....

its not im against what your trying to do, far from it....

id hate these leeches to screw someone even more than they already do in court.

i dont want anyone to think something, only the judge to rule the opposite

[Tee4Tim]

More interesting. I actually have a genuine reply from Minicredit via e-mail. They have stated:

 

"All Customers have the possibility to cancel the Loan Agreement within 14 days from the date of signing it. You signed the Loan Agreement with Microcredit Ltd on our webpage www.minicredit.co.uk on the 4th of March 2011 with a PIN number sent to Your mobile phone number.You may read about the repayment methods from the Loan Agreement. All payments have to be made with a debit card according to the Agreement. As sometimes the debit card details might not be available for the Customer we also provide the Ukash voucher payments as the alternative.

All the charges and interest will be added until full repayment. The visit of the doorstep collector will be postponed for 30 days when a partly payments is made by You."

It seems to suggest that by entering a PIN I was sent on a mobile phone I have accepted the contract, however the contract itself does not include this declaration, so I am uncertain of its legitimacy? The point I dispute the most is the nature of the agreement, it is as if it is a rolling credit agreement, much like a credit card one with a credit limit. The limit in the contract says £1,000 but I have never been offered more than £250. So, if I have never been able to borrow up to the credit limit, does that mean the contract has not been honoured? Additionally, when you sign up for an amount you chose a number of days of have the money for, along with a specific amount (or rather you request a specific amount which they will agree to or offer you a lower amount) surely there should be a seperate fixed sum agreement per loan? The unsigned contract on their website does not appear to be a fixed sum agreement.

Edited July 14, 2011 by Tee4Tim

[Tee4Tim]

Tonight I have also taken a screenshot showing my previous attempts to obtain loans up to my "Credit Limit" as per the Contract (whether that is even valid anyway) which have been refused. Therefore, has the company already broken the agreement by failing to lend the amount up to the credit limit (whilst no other loans are in effect)? I would genuinely appreciate some advice from professional or site bods on this. I am only interpretting the Acts and Orders as I see them as a lay person.

Edited July 14, 2011 by Tee4Tim

[Tee4Tim]

I have also sent this to Minicredit:

 

"Thank you for your response. However, I am confused as to how it is possible that I "signed" a loan agreement for you on 4th March 2011 and yet was declined for a loan. The only loan I agreement I have from yourselves is the UNSIGNED and UNDATED version available via the login on your website. That document states I have a credit limit of £1,000. Therefore it is surprising that in the 4 months since that date I have been unable to borrow £1,000. This suggests that on the 4th March 2011 you broke the agreement, if it was ever legally binding, by not forwarding the amount of credit that has been faciliatated within the agreement.

 

Even a credit agreement post-2004 electronically signed should have a tick box in place of the signature in the signature box, which does not exist on your agreement. I believe this means that the agreement is not properly executed. If that is the case only a court can consider whether the agreement is enforceable and will be considered on its merits."

 

The example for MBNA towards the bottom of the page on http://www.consumeractiongroup.co.uk/forum/showthread.php?162851-Consumer-Credit-Agreements-a-guide-to-enforceability seem to clearly show the signature tick box and date which are completely missing from the Minicredit one. Additionally in the Credit Limit section they state they will inform what it is (as Minicredit's "contract" does) but also that they may vary it from time to time. Minicredit's does NOT state this and therefore to deny a loan of up to the credit limit breaches the agreement I would have thought? But hey, what do I know?

[ihateyes]

there is a few payday companies here that use a rolling credit agreement, almost like a credit card.

[Tee4Tim]

"...The visit of the doorstep collector will be postponed for 30 days when a partly payments is made by You." - Err, no, it will been postponded indefinately as I stated in my letter to you quoting the relevant case law! And as for "partly payments" it's not even flaming English! Maybe I should reply in French? After all the court, which is where this looks like they want it to be heading will have "Dieu and mon droit" plastered all over it!